VAT update, November 2016

In this month’s update we report on new regulations which allow HMRC to refuse registration of VAT representatives, HMRC’s new policy on the correct treatment of VAT incurred by a business prior to its VAT registration and the EU’s extension of the UK’s VAT derogation permitting the UK to restrict input tax recovery on car leasing costs to 50% where the car is available for private use.

We also comment on three recent cases involving VAT bad debt relief provisions, issues surrounding ownership of VAT repayment claims where members have left a VAT group and admissibility of evidence where fraud is not alleged.